Accountancy Education in the Region: Benchmarking for SEE-PAD

1. Global Accountancy Education BenchmarkingDevelopment for SEEPAD WB REPARIS, Vienna March 14, 2006 Accountancy Education in the Region Presentation by Dr. Gert H. Karreman

2. World Bank REPARISAccountancy Education in the Region Benchmarking for SEEPAD: support professional development by making available a benchmarking methodology that can be used to identify strengths and weaknesses in the professional qualification of accountants and auditors; and to measure progress over time towards sustainable institutional capacity

3. World Bank REPARISAccountancy Education in the Region Partners in Benchmarking • SEEPAD General Assembly • SEEPAD Country Participants • GAEB Network Resource Team • GAEB External Assessors • USAID and CARANA Corporation • DePaul University

4. World Bank REPARISAccountancy Education in the Region South Eastern European Partnership on Accountancy Development • SEEPAD member bodies are taking responsibility for qualification standards • Accountancy standards are set in legislation • Professional bodies are uniquely positioned for partnerships

5. World Bank REPARISAccountancy Education in the Region SEEPAD Countries and Professional Bodies • Albania – IEKA, Albanian Institute of Authorised Chartered Auditors • Bosnia & Herzegovina – AAARS, Association of Accountants and Auditors in the Republika Srpska • Bulgaria – ICPA, Institute of Certified Public Accountants in Bulgaria • Kosovo – SCAAK, Society of Certified Accountants and Auditors of Kosovo

6. World Bank REPARISAccountancy Education in the Region SEEPAD Countries and Professional Bodies • Macedonia – AAFA, Association of Accountants, Financial Workers and Auditors of the Republic of Macedonia • Moldova – ACAP, Association of Professional Accountants and Auditors of the Republic of Moldova • Montenegro – IRRCG, Institute of the Association of Accountants of Montenegro

7. World Bank REPARISAccountancy Education in the Region SEEPAD Countries and Professional Bodies • Romania – CAFR, Chamber of Auditors in Romania • Romania – CECCAR, Body of Expert and Licensed Accountants of Romania • Serbia – SRRS, Serbian Association of Accountants and Auditors

8. World Bank REPARISAccountancy Education in the Region Relevance of Regional and Global Approaches to Qualification for SEEPAD • Regional programs are cost effective for smaller countries • Regional access to advanced international expertise • Reform is encouraged at a regional level

9. World Bank REPARISAccountancy Education in the Region Possible Areas for SEEPAD Cooperation • Qualification standards and professional requirements • Regional recognition as a basis for EU recognition • Examination content and structure • Program development for education and CPD • Practical experience requirements

10. World Bank REPARISAccountancy Education in the Region Reasons for Benchmarking • Compare systems of accountancy education with international standards and examples of best practice • Support decisions of the professional bodies for future development • Measure progress over time • Facilitate global trading in accountancy services

11. World Bank REPARISAccountancy Education in the Region Accountancy Education • Professional qualification and licensing requirements, • including an examination of professional competence at university final examination level • which guarantees that the theoretical knowledge and the ability to apply that knowledge have been obtained

12. World Bank REPARISAccountancy Education in the Region Accountancy Education (continued) • Professional education requirements, • covering the whole range of subjects necessary for accountants and auditors, • as defined by IFAC in the IES and the European Union in the EU 8th Directive

13. World Bank REPARISAccountancy Education in the Region Accountancy Education (continued) • Practical experience requirements, • primarily in the accounting and auditing function, • in a suitable professional environment, • under supervisors providing adequate guarantees regarding the standard and content of training

14. World Bank REPARIS Matrix of Accountancy Education

15. World Bank REPARISAccountancy Education in the Region Self Assessment with External Validation • Local experts with up-to-date knowledge of the present situation conduct the self assessment • External and independent assessors validate the results of the self assessment to achieve internal relevance and external credibility • Multiple indicators mark the priorities for development

16. World Bank REPARISAccountancy Education in the Region Multiple Indicators • Urgent development, no local expertise, external support needed • Critical deficiencies, some local expertise, external support needed to comply with IES in a reasonable time • Material deficiencies compared with IES, external support may be needed • Sustainability, necessary change can be achieved without external support

17. World Bank REPARISCountry Traffic Lights

18. World Bank REPARISAccountancy Education in the Region Professional Characteristics • Members and New Members • Continuing Professional Development • Qualification Standards • International Recognition • Higher Education • Final Examination

19. World Bank REPARISSEEPAD Professional Characteristics

20. World Bank REPARISAccountancy Education in the Region Professional Characteristics International recognition of professional qualifications in the region is urgently needed. Assessment procedures and examination infrastructure require improvement CPD programs lack qualified trainers, course content and a balance between theory and practice

21. World Bank REPARISAccountancy Education in the Region Education and Training • Professional Education • Accounting, Finance & Related Knowledge • Organizational & Business Knowledge • Information Technology • Skills, Values, Ethics & Attitudes • Practical Experience • Providers of Practical Experience

22. World Bank REPARISSEEPAD Education & Training

23. World Bank REPARISAccountancy Education in the Region Education and Training In general inadequate resources for teaching and training in organizational and business knowledge, IT and in skills, values, ethics and attitudes Practical experience requires mentoring by qualified professionals in a suitable professional environment

24. World Bank REPARISAccounting, Finance & Related Knowledge

25. World Bank REPARISAccounting, Finance & Related Knowledge Core accounting education and training is weak in the critical areas of management accounting & controls, audit & assurance, professional values & ethics, and financial accounting & reporting

26. World Bank REPARIS Organizational & Business Knowledge

27. World Bank REPARIS Organizational & Business Knowledge Core business education is not provided in sufficient depth in corporate governance, financial markets, organizational behavior, international business & globalization, management & strategic decision-making and in skills, values, ethics and attitudes

28. World Bank REPARISSkills, Values, Ethics & Attitudes

29. World Bank REPARISSkills, Values, Ethics & Attitudes Practical training in ethics, professional education in ethics, and technical and functional skills for accountants and auditors to competently perform assigned tasks need strengthening Ethics and values are covered superficially

30. GAEB World Bank PresentationConcluding Remarks • Urgent and critical gaps in compliance with international standards have been identified. • Working with international standard setters, donors and other stakeholders can close these gaps.

31. GAEB World Bank PresentationConcluding Remarks Development will contribute to • regional and global economic integration, • increased trade and investment, • better access to risk-based credit, -

32. GAEB World Bank PresentationConcluding Remarks -- and will result in • increased public and private sector confidence, and trust • in the accountancy profession, and • in the reliability and comparability of financial reporting and auditing